HomeMy WebLinkAbout11/20/2008, - BUDGET WORKSHOP: ""SETTING THE TABLE"" FOR THE 2009-11 GOAL-SETTING AND FINANCIAL PLAN PROCESS" C
council wn�,D� 11-18-08
ac,Enba REpoRt ,�Nb
CITY OF SAN LU I S O B I S P O
FROM: Ken Hampian, City Administrative Officer
Bill Statler, Director of Finance& Information Technology
SUBJECT: BUDGET WORKSHOP: "SETTING THE TABLE"FOR THE
2009-11 GOAL-SETTING AND FINANCIAL PLAN PROCESS
CAO RECOMMENDATION
Review and discuss the accompanying status reports in preparation for the 2009-11 goal-setting and
Financial Plan process:
1. Status of General Plan Implementation Programs and General Plan Update Options
2. Long-Term Capital Improvement Plan: Summary of Facility and Infrastructure Improvements
Through General Plan Build-Out
3. Status of 2007-09 Goals and Objectives
4. Status of Current Capital Improvement Plan Projects
5. General Fiscal Outlook
DISCUSSION
As discussed in the September 2, 2008 agenda report to the Council outlining the proposed
process and schedule for the 2009-11 Financial Plan, this "setting the table" workshop is the first
"formal" step in this process. Its purpose is to provide a comprehensive review of the status of
current plans, goals and policies. In short, it is a meaningful opportunity to consider "where we
are and where we've been"before launching into"where do we want to go next."
This is an especially appropriate start for Council goal-setting, as we have always defined the
purpose of the City's budget process as asking ourselves: of the many goals, objectives and work
programs set forth in our long-term planning and policy documents, which are we going to focus
on in the next two years?
With this approach, the City's two-year budget process becomes our key tool in programming the
implementation of these plans and policies by allocating the resources necessary to do so. In
short, we do not start the goal-setting process from scratch with an empty plate: it needs to be
informed by our adopted long-term plans, current two-year goals and fiscal outlook.
Accordingly, we have prepared the following five resource documents for this workshop in
providing a comprehensive menu of candidate goal entrees for 2009-11.
Adopted Long-Term Plans and Goals
These include the General Plan (and its many elements), Area Plans (like the Railroad District Plan
or Airport Area Specific Plan), Urban Water Management Plan, Water and Wastewater System
_ n
"Setting the Table''for 2009-11 Goal Setting and Financial Plan Process Page 2
Master Plans, Pavement Management Plan, Short Range Transit Plan, Access and Parking
Management Plan, Neighborhood Traffic Management Program, Bicycle Plan, Public Art Policy,
Conceptual Physical Plan for the City's Center, Information Technology Strategic Plan and
Facilities Master Plan.
These plans were subjects of significant staff analysis, community involvement and advisory body
and Council deliberation before they were adopted. As such, these should play an important role as
a starting point in setting goals for the next two years.
To facilitate taking a close look at these long-term plans as the first step in the goal-setting process,
we have prepared two resource documents, which accompany this report:
1. Attachment 1 provides a comprehensive overview of the current status of General Plan
implementation programs. It also includes a status report on implementation programs for four
key"area"plans: Downtown; Mid-Higuera Area, Railroad District and Airport Area.
General Plan Update Options. Attachment 1 also includes an expanded discussion of options
for updating the Land Use (LUE) and Circulation (CE) Elements, should the Council desire to
do so in 2009-11. On August 19, 2008, the Council reviewed a draft work program for a
comprehensive LUE and CE update. .At that meeting, the Council directed staff to develop
alternatives that could reduce the estimated cost of$1.4 million for a comprehensive update.
Along with a summary of the comprehensive approach, Attachment 1 provides an analysis of
advantages and disadvantages for four additional options:
a. Comprehensive LUE and CE update as conceptually presented to the Council in August
2008
b. Phased update--CE only in 2009-11 and LUE later
c. Focused update of the LUE and CE
d. Defer LUE and CE updates but update the traffic model for forecasting
e. Defer all work beyond 2009-11
No Council action is recommended on theses options at this time: we have prepared these
options as added background information for the Council as it considers goals for 2009-11.
2. Attachment 2 provides the long-term capital improvement plan (CIP) summarizing the costs of
the new facilities and infrastructure that will be needed to implement our General Plan or
achieve the goals of other important plans and policies previously adopted by the Council.
In preparing these reports, our goal was to make them comprehensive on one hand, but concise and
meaningful on the other. With this goal in mind, each of the .reports is introduced by a short
summary of key findings.
Status of Current Two-Year Major City Goals,Other Objectives and CIP Projects
Some of our Major City Goals (and "Other Important Council Objectives) may not be complete by
June 2009; as such, "carryover"work on them may be candidate major City goals for 2009-1.1.
"Setting the Table"for 2009-11 Goal Setting and Financial Plan Process Page 3
And even for those goals where the specific work programs for 2007-09 may be completed by June
2009, there may be "spin-ofr' tasks as a result. This is especially true for work programs in 2007-
09 where the objective was to complete plans or studies: with those now in place, a likely "spin-
off'into 2009-11 may be implementation of these studies.
To assist with this review, we have prepared two accompanying reports:
1. Status of Current Goals and Objectives(Attachment 3)
2. Status of Current CIP Projects(Attachment 4)
Each of these reports is introduced by a short summary of key findings.
General Fiscal Outlook
Along with long-standing plans and current goals, it is also important to place goal-setting in the
context of our fiscal condition and outlook. We plan to present a comprehensive look at our
fiscal outlook when we present the results of our five-year General Fund fiscal forecast to the
Council at the upcoming"Budget Foundation workshop scheduled for December 16, 2008.
However, in "setting the table" for this forecast, the report provided in Attachment 5 outlines our
General Fiscal Outlook, highlighting six key factors that will shape our fiscal outlook in the next
two years:
1. Where we've been: past fiscal challenges and budget balancing actions
2. Interim financial results for 2007-08: our current financial condition
3. General economic trends and current trends for key revenues
4. Key cost drivers
5. Infrastructure and facilities maintenance
Workshop Summary
While the goal-setting process can certainly be used to initiate goals that have never been on our
radar before, it should start from where we are today, based on the long-term plans and objectives
the City has already adopted and the high-priority programs and projects already underway. And
we should place this in the context of our fiscal outlook. Hopefully, this workshop's first step in
"setting the table"for the goal-setting process provides a meaningful look at these issues.
Next Steps in the Financial Plan Process: Key Dates
The following summarizes key dates for the goal-setting process before issuing the Preliminary
Financial Plan:
"Setting the Table"for 2009-11 Goal Setting and Financial Plan Process Page 4
U coming Key Dates in the 2009-I1 Financial Plan Process
Tuesday,December 16 Budget Foundation. Finalize plans for the goal-setting process; review
Council Chambers Financial Plan policies and organization; review audited financial results
7:00 to 10:00 PM for 2007-08; and discuss the results of five-year fiscal forecast.
Thursday,January 15 Community Forum. Consider comments and suggestions from
Ludwick Community Ctr community groups, interested individuals and Council advisory bodies.
6.:30 to 9:30 PM See Note Below on Date Change from January 14
Saturday,January 31 Council Goal-Setting Workshop. Discuss candidate goals received in
Library Community Room writing and presented at the January 15 forum; consider Council
8:30 AM to 4:00 PM member goals; prioritize and set major City goals.
Tuesday, February 3 Follow-Up to Council Goal-Setting if Needed. Continued
Regular Meeting consideration of goal-setting at the next regularly scheduled Council
Only if needed meeting following the January 31 workshop if needed.
Tuesday, February 24 Mid-Year Budget Review. Consider the City's fiscal status at the mid-
Council Chambers point of the fiscal year and make appropriation adjustments as needed.
7:00 to 10:00 PM
Tuesday April 14 Major City Goal Work Programs. Review and conceptually approve
Council Chambers detail work programs to accomplish major City goals; and set strategic
7:00 to 10:00 PM budget direction as needed.
As outlined in the calendar approved by the Council in - - -IJVAEZZ�- - _-
September 2008, following the steps above, we plan to
finalize and issue the Preliminary Financial Plan by May Note that the date of the Community
Forum has been changed to
28; and hold the first three preliminary budget Thursday, January 15, 2009.
workshops on the evenings of June 4 (Financial Plan
overview and General Fund operating programs), June
9 (General Fund capital improvement plan projects) and June 11 (Enterprise Fund programs,
projects and rates). The Financial Plan is also scheduled to be a topic of discussion at the next
Council meeting on June 16, with Financial Plan adoption planned for this meeting.
ATTACHMENTS
1. Status of General Plan Implementation Programs and General Plan Update Options
2. Long-Term Capital Improvement Plan: Summary of Facility and Infrastructure Improvements
Through General Plan Build-Out
3. Status of Current Goals and Objectives
4. Status of Current CIP Projects
5. General Fiscal Outlook
GABudget Foldcn;A Financial Plans\2009-11 Financial Plan\Council Goal-Sening\2008-11-20 Setting the Table Workshop\Agenda Report Setting the Table.11.20-08.doc